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FINANCE
Secretary Margarito Teves disclosed Thursday that the
Philippine government may borrow money from multilateral
agencies like the Asian Development Bank (ADB) and Japan
Bank for International Cooperation (JBIC) should the
World Bank (WB) decide to cancel the second phase of the
controversial National Roads Improvement and Management
Project (NRIMP) suspected by the WB officials of being
“overpriced.”
In a
press conference, Teves said the Arroyo administration
may also tap internationally generated funds as well as
money from government-owned and -controlled corporations
(GOCCs) while ruling out commercial borrowing so as not
to upset the government target of balancing the budget.
“[In
case of a] worst-case scenario, modifications in the
funding mix [will be implemented]. It can be a
combination of government funds and loans from other
multilateral agencies, [as well as loans from] GOCCs. We
will work with them and there has to be a timetable [for
this]. [We will get back to them on the project] at the
end of the year,” Teves told reporters.
Nonetheless, he explained that specific details
regarding the financing mix in case the NRIMP2 is
cancelled have yet to be drafted since the government
remains hopeful that the Bank will see the merits of the
project.
“We’re
confident the World Bank Board will approve the second
phase of the project, which is worth $232 million,” he
said.
In the
meantime, Teves said the government is instituting
safeguard measures to prevent other projects from
suffering the same fate.
Among
the safeguard measures, he said, are the implementation
of a technical audit, increased transparency of the
bidding process, and the possible adoption of the
Philippine procurement laws.
Meanwhile, the World Bank refused to disclose details of
the report made by the Department of Institutional
Integrity (INT). However, World Bank spokesman Peter
Stephens told reporters the board is considering the
release of the report that is already being evaluated.
Stephens
said the Bank has yet to give a timetable for the
approval and may defer the approval of the project for
an indefinite period of time.
“The INT
report is being considered by the board and the
Ombudsman. But I am not at liberty to discuss the
details,” Stephens said.
The
NRIMP comprises three phases, namely, the Phase 1
(NRIMP-1) loan worth US$150 million; of which $138 has
been disbursed; NRIMP-2 for $232 million, and NRIMP-3,
expected to range between $200 million and 250
million—for a total loan amount of $580 million to 630
million.
The
World Bank earlier rejected $33 million worth of
contracts, part of the first phase of the NRIMP, after
evidence of excessive pricing and collusion in the
procurement system was uncovered by the INT.
As a
result, the board deferred the approval of NRIMP2
pending investigation being conducted on the project.
NRIMP 2
will support the improvement of 450 km of national
arterial roads and related bridges, including upgrading
of 146 km and rehabilitation or widening of 304 km;
delivery of a comprehensive road-maintenance program
through long-term performance-based contracts and
preventive, routine and emergency maintenance; improved
organizational effectiveness and integrity of public
road-management services in the Department of Public
Works and Highways through reforms in corporate
processes, partnerships, and service delivery
structures; and strengthened operation of the Road Fund
and a framework for subsequent sector restructuring.
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